Army Corps of Engineers awards $108M contract for civil engineering construction, with a 3-bidder competition

Contract Overview

Contract Amount: $284,499,027 ($284.5M)

Contractor: Kokosing-Frucon, LLC

Awarding Agency: Department of Defense

Start Date: 2002-05-23

End Date: 2008-12-31

Contract Duration: 2,414 days

Daily Burn Rate: $117.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 200212!002822!96CE!CW69 !USA ENGINEER DISTRICT HUNTINGTON!DACW6902C0011 !A!N! !N! !20020523!20070430!107961943!107961943!107961943!N!KOKOSING FRUCON, LLC !17531 WATERFORD RD !FREDERICKTOWN !OH!43019!51724!039!54!MARMET !KANAWHA !W VIRGINIA!+000004000000!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!1!003!B! !D!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: BELLE, KANAWHA County, WEST VIRGINIA, 25015

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $284.5 million to KOKOSING-FRUCON, LLC for work described as: 200212!002822!96CE!CW69 !USA ENGINEER DISTRICT HUNTINGTON!DACW6902C0011 !A!N! !N! !20020523!20070430!107961943!107961943!107961943!N!KOKOSING FRUCON, LLC !17531 WATERFORD RD !FREDERICKTOWN !OH!43019!51724!039!54!MARMET !KANAW… Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract value of $108 million suggests a significant investment in civil engineering infrastructure. 3. The duration of the contract (over 6 years) implies a long-term project with sustained effort. 4. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy and civil engineering construction. 5. The contract was awarded to a single vendor, KOKOSING-FRUCON, LLC, after a competitive process. 6. The contract type is a Firm Fixed Price, which helps in budget certainty for the government.

Value Assessment

Rating: good

The contract value of $108 million for civil engineering construction appears reasonable given the project's scope and duration. Benchmarking against similar large-scale civil engineering projects managed by the Army Corps of Engineers would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, suggesting good financial planning.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Three bids were received, indicating a moderate level of competition for this significant civil engineering project. While three bidders suggest some level of market interest, a higher number of bids could potentially lead to more aggressive pricing and better value.

Taxpayer Impact: A competitive process with three bidders helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are likely the residents and businesses in the vicinity of the Marmet, West Virginia area, who will benefit from improved civil engineering infrastructure. The contract supports the development and maintenance of critical civil engineering facilities, contributing to public safety and economic activity. The geographic impact is concentrated in West Virginia, specifically around the Kanawha County area. The contract likely supports a workforce involved in heavy and civil engineering construction, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the long contract duration, despite the fixed-price nature.
Dependence on a single contractor for a long-term, critical infrastructure project could pose risks if the contractor faces financial or operational difficulties.
The moderate competition level (3 bidders) might mean less aggressive pricing than a more crowded field.

Positive Signals

The contract was awarded through full and open competition, maximizing the pool of potential bidders.
The firm fixed-price contract provides cost certainty for the government.
The project addresses critical civil engineering needs, indicating a well-defined government requirement.
The contractor, KOKOSING-FRUCON, LLC, has been awarded a substantial contract, suggesting a level of trust and capability.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically under NAICS code 237990 (Other Heavy and Civil Engineering Construction). This sector is characterized by large-scale projects such as infrastructure development, including dams, bridges, and other non-building structures. The market size for civil engineering construction is substantial, driven by government investment in public works and infrastructure renewal. This contract represents a significant piece of spending within this specialized segment of the construction industry.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value definitive contract, it is unlikely to have significant subcontracting opportunities specifically targeted at small businesses unless mandated by the prime contractor. The absence of a small business set-aside suggests the primary focus was on obtaining the best value from the broader market, rather than specifically fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely managed by the U.S. Army Engineer District, Huntington. Accountability measures are inherent in the definitive contract structure, with performance milestones and payment schedules. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army Corps of Engineers Civil Works Programs
Federal Highway Administration Construction Contracts
Department of Transportation Infrastructure Projects
Public Infrastructure Development Grants

Risk Flags

Long contract duration increases risk of unforeseen issues.
Moderate competition level (3 bidders) may limit price discovery.
Dependence on a single contractor for a large-value project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $284.5 million to KOKOSING-FRUCON, LLC. 200212!002822!96CE!CW69 !USA ENGINEER DISTRICT HUNTINGTON!DACW6902C0011 !A!N! !N! !20020523!20070430!107961943!107961943!107961943!N!KOKOSING FRUCON, LLC !17531 WATERFORD RD !FREDERICKTOWN !OH!43019!51724!039!54!MARMET !KANAWHA !W VIRGINIA!+000004000000!N!N!000000000000!Y299!ALL OTHER NON-BUILDING FACILITIES !C2 !CONSTRUCTION !5000!NOT DISCERNABLE OR CLASSIFIED !234990!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is KOKOSING-FRUCON, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $284.5 million.

What is the period of performance?

Start: 2002-05-23. End: 2008-12-31.

What is the track record of KOKOSING-FRUCON, LLC with federal contracts, particularly with the Department of Defense?

KOKOSING-FRUCON, LLC has been awarded this significant definitive contract by the Department of the Army, valued at approximately $108 million. This indicates a substantial engagement with the federal government. Further analysis of their contract history within the Federal Procurement Data System (FPDS) would reveal the number and types of previous contracts, their performance ratings, and any history of contract modifications or disputes. A review of their past performance on similar civil engineering projects would be crucial to assess their reliability and capability for this current undertaking.

How does the awarded price of $108 million compare to similar civil engineering construction projects undertaken by the Army Corps of Engineers?

The $108 million award for civil engineering construction by the Army Corps of Engineers is a substantial figure, indicative of a large-scale project. To benchmark its value, one would compare it to other definitive contracts awarded by the Army Corps of Engineers for similar types of work (e.g., dam construction, flood control structures, waterway improvements) within the last 3-5 years. Factors such as project complexity, geographic location, prevailing labor and material costs, and contract duration would need to be considered. Without specific comparable project data, it's difficult to definitively state if this represents excellent or fair value, but the firm fixed-price nature and competitive bidding suggest an effort towards achieving good value.

What are the primary risks associated with a definitive contract of this duration (over 6 years) and value?

The primary risks associated with a definitive contract of this duration and value include potential cost escalation for materials and labor, unforeseen site conditions that could lead to change orders (even in fixed-price contracts), contractor performance issues, and shifts in government priorities or funding availability. For a firm fixed-price contract, the risk of cost overruns largely falls on the contractor, but significant issues could still lead to disputes or contractor default. Long durations also increase the chance of technological obsolescence or changes in regulatory requirements impacting the project's scope or execution.

What specific civil engineering services or infrastructure improvements does this contract entail?

The contract is classified under NAICS code 237990, 'Other Heavy and Civil Engineering Construction,' and the Product Service Code (PSC) is C2, 'Heavy Construction - Other Non-Building Facilities.' While the specific details of the project are not fully elaborated in the provided data, this classification suggests the contract likely involves the construction, repair, or maintenance of significant civil infrastructure. Examples could include dams, levees, flood control structures, waterways, or other large-scale public works projects managed by the Army Corps of Engineers, potentially related to navigation, flood risk management, or environmental restoration in the Huntington district's area of responsibility.

How has federal spending in the heavy and civil engineering construction sector trended in recent years, and how does this contract fit within that trend?

Federal spending in the heavy and civil engineering construction sector has historically been cyclical, often influenced by infrastructure initiatives and economic conditions. Following periods of underinvestment, there has been a renewed focus on infrastructure renewal, potentially leading to increased federal outlays. This $108 million contract aligns with this trend by representing a significant investment in critical infrastructure. Its value suggests it is a substantial project within the broader federal construction spending landscape, contributing to the overall activity in this sector.

What are the implications of awarding a contract of this magnitude to a single entity, even after competition?

Awarding a contract of this magnitude to a single entity, even after competition, concentrates project execution risk with that one contractor. While competition helps ensure a fair price initially, the long-term success hinges on the contractor's sustained performance, financial stability, and technical capability. It also means that if the contractor encounters significant problems, the government may face delays and the need to find a replacement, which can be costly and time-consuming. However, for complex, large-scale projects, a single prime contractor can offer streamlined management and coordination.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 17531 WATERFORD RD, FREDERICKTOWN, OH, 43019

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline